Euro was holding a firm tone at the start of the US session, bolstered by upbeat eurozone data and by a squeeze on shorts ahead of the weekend. Pair had stalled just atop $1.3200 but reversal consolidated above $1.3180 as dip buyers emerged and fresh demand into the ECB fixing allowed a quick pop to $1.3210 before fresh selling emerged. Despite talk of stops above $1.3210, euro deflated again for trade to $1.3175 as weak longs were flushed but pair turned easily from there, regaining $1.3200 by the option expiry. A burst of buying by breakout funds and others saw demise of stops in the $1.3210/20 zone with euro spiking to $1.3225 moments after the option cut but momentum stalled again and pair spent two hours deflating slowly to $1.3210 by the London close. Afternoon dealings saw euro hold a narrow range atop $1.3200 while remaining shy of the morning high. Late dealings found euro at $1.3214.
EasyForexNews Research Team